1. Outlook
Global Economy
Significant uncertainty regarding the nature and timeline of tariffs to be imposed by the US has complicated the global outlook. While growth in the US and China is expected to slow down in 2025, the Eurozone, the United Kingdom (UK) and Japan are expected to see a growth uptick.
Protracted uncertainty related to tariffs and other policies poses downside risks to S&P Globals November 2024 baseline scenario for GDP growth presented below.
US: S&P Global expects growth to moderate to 2.0% each in 2025 and 2026 from 2.7% in 2024, as per its baseline. However, it cautions that the proposed tariffs on China, Mexico and Canada can reduce 2026 GDP by 0.6% from baseline. This will be a result of reduced household purchasing power, increased investment uncertainty and adverse impact on US exporters.
China: As per its baseline, S&P Global expects Chinas GDP growth to moderate to 4.1% in 2025 and 3.8% in 2026, from 4.8% in 2024, driven by the imposition of an additional 10% tariff on goods imported into the US from China (taking the effective weighted average tariff from 14% to 25% from the second quarter of 2025).
Eurozone: As per its baseline, S&P Global expects 1.2% growth in 2025 and 1.3% in 2026 vs 0.8% in 2024, as lower interest rates strengthen household purchasing power. While tariffs on the EU have not yet been explicitly announced, S&P Globals scenario analysis assumes a 10% tariff on all merchandise exports to the US beginning in the second half of 2025. In such a scenario, the EUs growth would be below the baseline in 2026 because of reduced trade with the US, as well as increased imported inflation stemming from a weaker currency.
Japan: As per its baseline, S&P Global expects Japan to grow 1.3% in 2025 and 1.0% in 2026, a reversal from the 0.3% contraction in 2024 as household consumption is expected to rise given a pick-up in wage growth.
UK: As per its baseline, S&P Global expects the UK economy to grow 1.5% in 2025 and 1.6% in 2026, up from 0.9% in 2024, with public spending expected to push up growth.
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Source: Crisil Intelligence - Safe harbours and windy waters, India Outlook, fiscal 2026 - March 2025 - by S&P GlobalIndian economy
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According to the data released by National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), the Growth Rate of Indias Real GDP for 2024-25 is estimated as 6.5% as compared to 9.2% in 2023-24.3
Indias economy is expected to maintain the growth rate of 6.5% in fiscal 2026, same as estimated for fiscal 2025, assuming the upcoming monsoon season is normal yet again and commodity prices remain soft. Cooling food inflation, the tax benefits announced in the Union Budget 2025-2026 and lower borrowing costs will drive discretionary consumption.Risks to the outlook are tilted to the downside given elevated uncertainty due to the tariff war led by the United States (US) and geopolitical uncertainties.
In fiscal 2026, growth will be supported by easing monetary policy and government measures to boost private consumption. The budgeted 10.1% increase in government capital expenditure (capex) will also be supportive.
Growth will be steady compared with fiscal 2025 despite overall lower fiscal impulse as the government reduces its fiscal deficit target to 4.4% of gross domestic product (GDP) from the revised estimate of 4.8%. Emerging global risks are a key monitorable as they could dent export growth and keep uncertainty levels high, which is detrimental to a broad-based private sector investment revival.
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Source: Press Note - Ministry of Statistics and Programme Implementation (MoSPI) - February 28, 20253
Source: Crisil Intelligence - Safe harbours and windy waters, India Outlook, fiscal 2026 - March 2025 - by S&P Global2. Indian Equity Market
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The Indian equity benchmarks delivered positive returns in the fiscal year 2024-25 despite heightened volatility in the second half of the year, data from stock exchanges showed.4
Following the election victory, markets staged a one-way up move as market participants hailed political stability in the county, and expectations of the pace of economic reforms to pick up ignited positive sentiment; 5During the initial six months of the year, economic growth and retail investment propelled the market; however, the latter half experienced significant corrections caused by disappointing earnings, a deceleration in economic expansion, inflated valuations, and substantial foreign capital withdrawal.5
In the latter part of the year, increased global uncertainty stemming from US tariff policies also impacted domestic market sentiment. The Nifty 50 stayed negative for five straight months—October 2024 to February 2025—signifying its longest period of monthly losses since it was established in 1996.4
There was a flight of overseas investors to other Asian countries such as China as the nation turned attractive given a number of stimulus measures that it took to boost the economy.4
Source: www.upstox.com 5Source: www.businessworld.inGold outshines all asset classes in FY25
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Gold emerged as the best-performing asset class in FY25, rising 41% in dollar terms. The rally was fueled by heightened investment demand for gold as a safe-haven asset amid rising geopolitical and macroeconomic uncertainty and reinforced by golds traditional role as an inflation hedge, as well as a surge in central bank purchases in the last few years. Gold-backed ETFs also saw a sharp revival globally, reversing multi-quarter outflows, with India recording robust inflow.6
NSEs - Market Pulse report - April 2025Future Outlook
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The major factors shaping domestic market sentiment in FY 2026 include:Earning Trajectory: FY25 was marked by significant weakness in earnings of India Inc. There are expectations that earnings will revive from Q1FY26, while Q4FY25 numbers could be stable. Healthy earnings from key sectors, such as financials, automobiles, IT, and FMCG, will boost market sentiment.
Growth-inflation dynamics: Indian economy is expected to see a healthy growth of over 6 per cent in FY25. Inflation is also declining and expected to remain benign in the coming months. Inflation dynamics will play a crucial role in shaping the Indian stock market. The upcoming monsoon season and policy support will be key determinants, while weather-related shocks and global uncertainties could disrupt expectations for domestic growth and inflation.
US Tariff Policies: The tariff moves by US have added significant uncertainty to global markets. A trade war could slow global economic growth and heighten inflation risks. While India may be among the least affected nations, it cannot remain insulated from a weakening global economy. US tariff policies will be a crucial trigger for the Indian stock market going ahead.
US Federal Reserve: The US Feds interest rate trajectory and commentary on growth and inflation in the US will be among the key triggers that will shape the movement of US bond yields and the dollar and influence stock market sentiment.
Global Factors: Evolving situations in the Middle East, a trade war triggered by US tariff moves, and Chinese economic growth will also be among the major factors affecting the Indian stock market.
If the Chinese economy experiences robust growth due to policy measures, it could lead to some foreign capital outflows from the Indian stock market. Meanwhile, escalating tensions in the Middle East may push crude oil prices higher, posing a challenge for India, one of the worlds largest oil importers.
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Source: https://www.livemint.com/3. Industry Structure and Developments
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The Reserve Banks scale-based regulation (SBR) framework categorises NBFCs into top, upper, middle and base layers, based on their size, activity, and perceived riskiness. The SBR framework is progressive in that it is built on the principle of proportionality, with regulations commensurate with the size and interconnectedness of the NBFCs. Smaller and/or less complex NBFCs are relatively lightly regulated, while larger and more systemically important NBFCs are subjected to enhanced regulatory scrutiny.9
A list of 15 NBFCs-UL, identified as per the methodology specified in scale based regulation for NBFCs, was released on January 16, 2025. The Top Layer is ideally expected to be empty unless RBI recognizes substantial increase in the potential systemic risk from specific NBFCs in the Upper Layer.Your Company is non-public deposit taking non-banking financial company (NBFC), classified as NBFC-Investment and Credit Company (NBFC-ICC) and categories as Base-Layer NBFC.
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Source: RB! Report on Trend and Progress of Banking in India 2023-24 9Source: h ttps://www. rbi. org. in/4. Financial Performance
During the year 2024-25, the Company recorded a loss of INR 26,146.7 thousands from its Future & Option trading activities. These losses arose primarily as the markets experienced heightened volatility. While the loss represents a significant impact on our overall profitability, it is within our risk tolerance levels, and we have taken steps to adjust our trading strategies and will maintain a disciplined approach to derivatives to prevent such losses in the future.
5. Key Financial Ratios
The details of key financial ratios have been disclosed in notes to the Standalone Financial Statements.
6. Opportunities and Threats
Your Company operates in only the investment segment and its main business is acquisition of securities.
The volatility in stock indices in the financial year under report represents both an opportunity and challenge for the Company. Capital market activities in which our business operations depend on is also influenced by global events and hence there is an amount of uncertainty in the near term outlook of the market.
However, strong and stable government at center, the capital market prospect would significantly improve. All business related risks are continuously analysed and reviewed at various levels of management through an effective information system. The Company is having excellent Board of Directors who are Experts in financial sector, and are helping the Company in making good Investment.
7. Risk & Concern
The Company is exposed to various risks such as liquidity risk, credit risk, market risk, price risk, etc.
The Company follows a prudent approach for managing liquidity and ensures availability of adequate liquidity buffers to overcome mismatches in case of stressed market environment.
To effectively manage market risk on its investment portfolio, Your Company follows a prudent investment approach which guide its investment decisions.
The Company has invested majorly in large cap equity securities which is subject to lower volatility and is expected to create value over the long-term. The Company also holds cash and cash equivalents with banks and the credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.
The Company calibrates the duration of investment portfolio to balance the twin objectives of maintaining liquidity for business and minimum adverse fair value change on its investment portfolio.
8. Internal Control System and adequacy
The Company has well defined and adequate internal control system to safeguard all assets and ensure operational excellence. These systems are being regularly reviewed and wherever necessary are modified or redesigned to ensure better efficiency and effectiveness. The systems are subjected to supervision by the Board of Directors and the Audit Committee, duly supported by Corporate Governance. Company complies with all applicable statutes, policies, procedures, listing requirements and management guidelines.
9. Human Resource / Industrial Relations
Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies and processes to meet its business needs. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys growth. Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement. As at March 31, 2025, the total employee count of the Company stands at 2.
10. Cautionary Statement
This report contains forward-looking statements extracted from reports of Statutory Authorities / Bodies, Industry Associations etc., media reports, available in the public domain, which may involve risks and uncertainties including, but not limited to, economic conditions, government policies, dependence on certain businesses, and other factors. Actual results, performance, or achievements could differ materially from those expressed or implied in such forward-looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto. The Company does not undertake to update these statements.
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